Income Tax Appellate Tribunal - Allahabad
Dcit, Central Circle,Alld, Allahabad vs M/S Ramji & Brothers, Allahabad on 30 August, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
ALLAHABAD BENCH, ALLAHABAD
BEFORE SHRI. A. D. JAIN, VICE PRESIDENT
AND T. S. KAPOOR, ACCOUNTANT MEMBER
SL. ITA NO./CO NO. A.Y. APPELLANT RESPONDENT ASSESSEE BY
NO.
1 ITA NO.457/ALLD/05 B.P. DCIT, ALLAHABAD PRADEEP KUMAR Shri Praveen Godbole,
ENDED AGRAWAL,213-B/1A, Advocate
ON ALOPIBAGH, ALLAHABAD
23.08.98
2 ITA NO.124/ALLD/10 2000-01 ACIT CIRCLE-II, M/S MADHU COLONISERS(P) Shri Praveen Godbole,
ALLAHABAD LTD., 41/8,KATRA ROAD, Advocate
ALLAHABAD
3 ITA NO.105/ALLD/13 2005-06 DCIT, ALLAHABAD M/S BHOLA FOOD Shri Praveen Godbole,
PRODUCTS (P) LTD., Advocate
SAHASON, ALLAHABAD -
221507
PAN: AACCB2409D
4 CO NO.19/ALLD/13 M/S BHOLA FOOD DCIT, ALLAHABAD
PRODUCTS (P) LTD.,
SAHASON, ALLAHABAD -
221507
5 ITA NO.180/ALLD/13 2009-10 DCIT, ALLAHABAD M/S BHOLA FOOD Shri Praveen Godbole,
PRODUCTS (P), LTD., Advocate
SAHASON, ALLAHABAD,
221507
PAN: AACCB2409D
6 CO NO.20/ALLD/13 M/S BHOLA FOOD DCIT, ALLAHABAD
PRODUCTS (P) LTD.,
SAHASON, ALLAHABAD -
221507
7 ITA NO.181/ALLD/13 2010-11 DCIT, ALLAHABAD M/S BHOLA FOOD Shri Praveen Godbole,
PRODUCTS (P) LTD., Advocate
SAHASON, ALLAHABAD -
221507
PAN: AACCB2409D
8 CO NO.21/ALLD/13 M/S BHOLA FOOD DCIT, ALLAHABAD
PRODUCTS (P) LTD.,
SAHASON, ALLAHABAD -
221507
9 ITA NO.178/ALLD/13 2008-09 JCIT,(OSD), ALLAHABAD M/S BALAJI AGRICULTURAL Shri Praveen Godbole,
INDUSTRIES (P) LTD., Advocate
SAHSON, ALLAHABAD
PAN: AAACB9238J
10 CO NO.15/ALLD/13 M/S BALAJI JCIT,(OSD), ALLAHABAD
AGRICULTURAL
INDUSTRIES (P) LTD.,
SAHSON, ALLAHABAD
11 ITA NO.135/ALLD/13 2007-08 DCIT, ALLAHABAD M/S KESARWANI Shri Praveen Godbole,
MARKETING (P) LTD., Advocate
SAHSON, ALLAHABAD
PAN: AACCK2094H
12 CO NO.17/ALLD/13 M/S KESARWANI DCIT, ALLAHABAD
MARKETING (P) LTD.,
SAHSON,ALLAHABAD
13 ITA NO.136/ALLD/13 2008-09 DCIT, ALLAHABAD M/S KESARWANI Shri Praveen Godbole,
MARKETING (P) LTD., Advocate
SAHSON, ALLAHABAD
PAN: AACCK2094H
14 CO NO.18/ALLD/13 M/S KESARWANI DCIT, ALLAHABAD
MARKETING (P) LTD.,
SAHSON, ALLAHABAD
15 ITA NO.182/ALLD/13 2005-06 JCIT (OSD), ALLAHABAD M/S KESARWANI Shri Praveen Godbole,
MARKETING (P) LTD., Advocate
SAHSON, ALLAHABAD
ITA NO.457/ALLD/05 and 72 other appeals and COs Page 2 of 12
PAN: AACCK2094H
16 CO NO.31/ALLD/13 M/S KESARWANI JCIT (OSD), ALLAHABAD
MARKETING (P) LTD.,
SAHSON, ALLAHABAD
17 ITA NO.183/ALLD/13 2009-10 JCIT(OSD), ALLAHABAD M/S KESARWANI Shri Praveen Godbole,
MARKETING (P) LTD., Advocate
SAHSON, ALLAHABAD
PAN: AACCK2094H
18 CO NO.32/ALLD/13 M/S KESARWANI JCIT(OSD), ALLAHABAD
MARKETING (P) LTD.,
SAHSON, ALLAHABAD
19 ITA NO.28/ALLD/14 2010-11 ACIT, C.C., ALLAHABAD RAJ KUMAR, SAHSON, Shri Praveen Godbole,
ALLAHABAD - 211005 Advocate
PAN: ADAPK7393R
20 CO NO.9/ALLD/15 RAJ KUMAR, SAHSON, ACIT, C.C., ALLAHABAD
ALLAHABAD - 211005
21 ITA NO.64/ALLD/14 2009-10 ITO, RANGE-III(4), YOGESH KUMAR PANDEY, Shri Praveen Godbole,
MIRZAPUR PROP. M/S PAWAN Advocate
TRADERS, VINDHYAPURI
COLONY, MIRZAPUR -
231001
PAN: ALSPP7677B
22 ITA NO.11/ALLD/11 2003-04 ACIT, CIRCLE-II, ALLAHABAD HIGH SCHOOL Shri Ashish Bansal,
ALLAHABAD SOCIETY, 4, P.D.TANDON Advocate
ROAD, ALLAHABAD
23 ITA NO.12/ALLD/11 2004-05 PAN: AABTA2869A
24 ITA NO.13/ALLD/11 2005-06
25 ITA NO.316/ALLD/14 2004-05 ACIT, ALLAHABAD LALJI KESARWANI, 119-A/4, Shri Ashish Bansal,
BAI KA BAGH, ALLAHABAD - Advocate
211003
26 ITA NO.317/ALLD/14 2003-04 PAN: AAAHL9728A
27 ITA NO.381/ALLD/15 2011-12 DCIT, ALLAHABAD M/S BABA BUILDERS, 218-D, Shri Praveen Godbole,
JAYANTIPUR, SULEMSARAI, Advocate
ALLAHABAD
PAN: AAEFB6440R
28 CO NO.35/ALLD/15 M/S BABA BUILDERS, DCIT, ALLAHABAD
218-D, JAYANTIPUR,
SULEMSARAI,
ALLAHABAD
29 ITA NO.457/ALLD/15 2010-11 ACIT, CENTRAL CIR., POONAM VAISH, Shri Praveen Godbole,
ALLAHABAD HALDWANI Advocate
PAN: ADRPV9866D
30 ITA NO.27/ALLD/16 2011-12 ACIT, ALLAHABAD SMT. RADHA DEVI, Shri Praveen Godbole,
HALDWANI Advocate
PAN: AHRPD7238P
31 CO NO.15/ALLD/16 SMT. RADHA DEVI, ACIT, ALLAHABAD
HALDWANI
32 ITA NO.28/ALLD/16 2010-11 ACIT, ALLAHABAD SMT. RADHA DEVI, Shri Praveen Godbole,
HALDWANI Advocate
PAN: AHRPD7238P
33 CO NO.16/ALLD/16 SMT. RADHA DEVI, ACIT, ALLAHABAD
HALDWANI
34 ITA NO.39/ALLD/16 2005-06 ACIT, C.C., ALLAHABAD SURESH CHANDRA, 86, NEW Shri Praveen Godbole,
BAIRAHANA, ALAHABAD - Advocate
211003
PAN: AAOPC3311J
35 CO NO.7/ALLD/16 SURESH CHANDRA, 86, ACIT, C.C., ALLAHABAD
NEW BAIRAHANA,
ALLAHABAD - 211003
36 ITA NO.40/ALLD/16 2006-07 ACIT, ALLAHABAD SURESH CHANDRA, 86, NEW Shri Praveen Godbole,
BAIRAHANA, ALLAHABAD - Advocate
211003
PAN: AAOPC3311J
ITA NO.457/ALLD/05 and 72 other appeals and COs Page 3 of 12
37 CO NO.8/ALLD/16 SURESH CHANDRA, 86, ACIT, ALLAHABAD
NEW BAIRAHANA,
ALLAHABAD - 211003
38 ITA NO.41/ALLD/16 2007-08 ACIT, ALLAHABAD SURESH CHANDRA, 86, NEW Shri Praveen Godbole,
BAIRAHANA, ALLAHABAD - Advocate
211003
PAN: AAOPC3311J
39 CO NO.9/ALLD/16 SURESH CHANDRA, 86, ACIT, ALLAHABAD
NEW BAIRAHANA,
ALLAHABAD - 211003
40 ITA NO.42/ALLD/16 2010-11 ACIT, C.C., ALLAHABAD SURESH CHANDRA, 86, NEW Shri Praveen Godbole,
BAIRAHANA, ALLAHABAD - Advocate
211003
PAN: AAOPC3311J
41 CO NO.10/ALLD/16 SURESH CHANDRA, 86, ACIT, C.C., ALLAHABAD
NEW BAIRAHANA,
ALLAHABAD - 211003
42 ITA NO.43/ALLD/16 2011-12 ACIT, C.C., ALLAHABAD SURESH CHANDRA, 86, NEW Shri Praveen Godbole,
BAIRAHANA, ALLAHABAD - Advocate
211003
PAN: AAOPC3311J
43 CO NO.11/ALLD/16 SURESH CHANDRA, 86, ACIT, C.C., ALLAHABAD
NEW BAIRAHANA,
ALLAHABAD - 211003
44 ITA NO.47/ALLD/16 2006-07 ACIT, CENTRAL CIRCLE, CHANDRESH KUMAR GOEL, Shri Praveen Godbole,
ALLAHABAD 24/8 GAURAV NAGAR, Advocate
CHOPAN, SONEBHADRA -
231205
PAN: AJHPG0954H
45 CO NO.13/ALLD/17 CHANDRESH KUMAR ACIT, CENTRAL CIRCLE,
GOEL, 24/8 GAURAV ALLAHABAD
NAGAR, CHOPAN,
SONEBHADRA - 231205
46 ITA NO.95/ALLD/16 2011-12 DCIT, CENTRAL CIRCLE, M/S RAMJI & BROTHERS, Shri Praveen Godbole,
ALLAHABAD 282, NEW BAIRAHANA Advocate
PAN: AAHFR7639D
47 ITA NO.168/ALLD/16 2011-12 ACIT, MIRZAPUR SATYA NARAYAN SINGH, E- Shri Praveen Godbole,
5/21, SECTOR-A, DALLA Advocate
CEMENT FACTORY, DALLA,
SONEBAHDRA
PAN: ALLPS3488G
48 CO NO.33/ALLD/16 SATYA NARAYAN SINGH, ACIT, MIRZAPUR
E-5/21, SECTOR-A,
DALLA CEMENT
FACTORY, DALLA,
SONEBAHDRA
PAN: ALLPS3488G
49 ITA NO.203/ALLD/16 2011-12 ACIT, CENTRAL CIRCLE, M/S SIDHI VINAYAK STONE Shri Praveen Godbole,
ALLAHABAD WORKS, MARKUNDI, Advocate
SONEBHADRA
PAN: ABWFS1302G
50 ITA NO.217/ALLD/16 2007-08 DCIT, MIRZAPUR M/S ZILA SAHKARI BANK Shri Ashish Bansal,
LTD., COLLECTRATE Advocate
COMPOUND, MIRZAPUR -
231001
51 ITA NO.218/ALLD/16 2012-13 PAN: AAAAZ0342H
52 ITA NO.224/ALLD/16 2011-12 DCIT, CIRCLE, M/S. SULTANPUR BUILDERS None
SULTANPUR & SUPPLIERS (P) LTD.,
732/A, SHREE RAM NAGAR,
SULTANPUR - 228001
PAN: AAEAS9989B
53 ITA NO.102/ALLD/17 2005-06 ACIT, ALLAHABAD SMT BINDO DEVI, 5A- 10/6, Shri Praveen Godbole,
MUIR ROAD, ALLAHABAD Advocate
PAN: ACQPD8391K
ITA NO.457/ALLD/05 and 72 other appeals and COs Page 4 of 12
54 ITA NO.131/ALLD/17 2008-09 ACIT, CENTRAL CIRCLE, M/S. SUBHASH STONE Shri Praveen Godbole,
ALLAHABAD INDUSTRIES LIMITED, Advocate
AMBIKA VIHAR HALDWANI,
NAINITAL ROAD, NAINITAL
- 263139
PAN: AABCR0021Q
55 ITA NO.133/ALLD/17 2008-09 ACIT, CENTRAL CIRCLE, SHASI VAISH, 86, NEW Shri Praveen Godbole,
ALLAHABAD BAIRAHANA, ALLAHABAD - Advocate
211003
PAN: ADKPV3246N
56 CO NO.24/ALLD/17 SHASI VAISH, 86, NEW ACIT, CENTRAL CIRCLE,
BAIRAHANA, ALLAHABAD ALLAHABAD
- 211003
PAN: ADKPV3246N
57 ITA NO.185/ALLD/17 2014-15 ITO, WARD-II(3), M/S. SISODIYA JEWELLERS Shri Sanjay Jaiswal for
ALLAHABAD PVT. LTD., 36-B, M.G. Shri Shishir Bajpai,
MARG, CIVIL LINES, C.A.
ALLAHABAD - 211001
PAN: AAFCM4352B
58 ITA NO.46/ALLD/18 2008-09 ACIT, ALLAHABAD HEMANT KUMAR SINDHI, Shri Praveen Godbole,
17, INDUSTRIAL ESTATE, Advocate
NAINI, ALLAHABAD -211008
PAN: AEXPS6325M
59 CO NO.15/ALLD/18 HEMANT KUMAR SINDHI, ACIT, ALLAHABAD
17, INDUSTRIAL ESTATE,
NAINI, ALLAHABAD -
211008
60 ITA NO.51/ALLD/18 2013-14 ACIT, ALLAHABAD HEMANT KUMAR SINDHI, Shri Praveen Godbole,
17, INDUSTRIAL ESTATE, Advocate
NAINI, ALLAHABAD -211008
PAN: AEXPS6325M
61 CO NO.20/ALLD/18 HEMANT KUMAR SINDHI, ACIT, ALLAHABAD
17, INDUSTRIAL ESTATE,
NAINI, ALLAHABAD -
211008
62 ITA NO.52/ALLD/18 2014-15 ACIT, ALLAHABAD HEMANT KUMAR SINDHI, Shri Praveen Godbole,
17, INDUSTRIAL ESTATE, Advocate
NAINI, ALLAHABAD -211008
PAN: AEXPS6325M
63 CO NO.21/ALLD/18 HEMANT KUMAR SINDHI, ACIT, ALLAHABAD
17, INDUSTRIAL ESTATE,
NAINI, ALLAHABAD -
211008
PAN: AEXPS6325M
64 ITA NO.163/ALLD/18 2014-15 INCOME TAX OFFICER- SADHNA MISHRA, 625A/1, Shri Praveen Godbole,
5(5), BANDA GANDHI NAGAR, SUBHASH Advocate
NAGAR, MAHOBA - 210427
PAN: CDEPM9286P
65 ITA NO.248/ALLD/18 2013-14 ACIT, CENTRAL CIRCLE, M/S. H.K. INFRAVENTURES Shri Praveen Godbole,
ALLAHABAD PVT. LTD., 7, INDUSTRIAL Advocate
COLONY, NAINI,
ALLAHABAD - 211008
PAN: AACCH6249K
66 CO NO.22/ALLD/18 M/S. H.K. ACIT, CENTRAL CIRCLE,
INFRAVENTURES PVT. ALLAHABAD
LTD., 7, INDUSTRIAL
COLONY, NAINI,
ALLAHABAD - 211008
PAN: AACCH6249K
67 ITA NO.26/ALLD/19 2010-11 ITO, ALLAHABAD M/S J.P. ASSOCIATES, NAI Shri Praveen Godbole,
BAZAR, MAU AIMA, Advocate
ALLAHABAD - 212507
PAN: AADFJ8978M
68 ITA NO.89/ALLD/19 2007-08 ACIT, CENTRAL CIRCLE, VIJAY VAISH, 86, NEW Shri Praveen Godbole,
ALLAHABAD BAIRAHNA, ALLAHABAD - Advocate
211005
PAN: ABSPV1338F
ITA NO.457/ALLD/05 and 72 other appeals and COs Page 5 of 12
69 ITA NO.94/ALLD/19 2016-17 D.C.I.T., CIRCLE-II, PRIYANK TAYAL,6, PRAYAG Shri Shashank
ALLAHABAD STREET, ALLAHABAD - Shekhar Shukla,
211008 Advocate
PAN: ABWPT8813H
70 ITA NO.95/ALLD/19 2016-17 D.C.I.T., CIRCLE-II, AMITABH TAYAL, 6, PRATAP Shri Shashank
ALLAHABAD STREET, ALLAHABAD - Shekhar Shukla,
211001 Advocate
PAN: ABCPT1115A
71 ITA NO.97/ALLD/19 2015-16 D.C.I.T., CIRCLE-I, DEVENDRA SINGH, Shri Praveen Godbole,
ALLAHABAD ALLAHABAD Advocate
PAN: AIKPS9382D
72 ITA NO.98/ALLD/19 2015-16 IT OFFICER, WARD-1(4), IFTEKHAR MAHMOOD Shri Praveen Godbole,
BHADOHI ANSARI, PIRKHANPUR, Advocate
QUAZIPUR ROAD, BHADOHI
- 221401
PAN: AFNPA6777J
73 ITA NO.103/ALLD/19 2010-11 ACIT, CENTRAL CIRCLE, M/S SUBHASH STONE Shri Praveen Godbole,
ALLAHABAD PRODUCTS PVT. LTD., BARI Advocate
DALLA, SONEBHADRA -
263139
PAN: AAICS3246F
Department by: Shri Shantanu Dhameeja, CIT (DR) and
Shri A. K. Singh, D.R.
Date of hearing: 30 08 2019
Date of pronouncement: 30 08 2019
ORDER
PER BENCH:
These appeals filed by the Revenue are directed against the orders by the Commissioner of Income Tax (Appeals)/s, relating to different assessees for different assessment years, and in some cases the assessees have also filed Cross Objections (COs).
2. Section 268A of the Act provides that an appellate authority, including the Appellate Tribunal, shall have regard to the instructions, directions, orders, etc. issued by the CBDT ('Board') from time to time fixing monetary limits for the purpose of regulating the filing of appeals by the Revenue before the different appellate authorities, and which shall, while deciding those appeals, have regard to the said limits.
3. Since the 'tax effect', as computed in terms of Circular 3 of 2018, dated 11/7/2018 issued by the Board u/s. 119 r/w s. 268A of the Act, involved in these appeals filed by the Department does not exceed Rs.50 lakhs in each of these appeals, they are not maintainable in view of CBDT's Circular ITA NO.457/ALLD/05 and 72 other appeals and COs Page 6 of 12 No.17/2019, dated 8th August, 2019, and are liable to be dismissed as such. Since all these appeals are to be disposed on the basis of the monetary limit, as now revised, we have decided to dispose of them by passing a composite order.
4. The parties were heard.
5. Recently, the Ahmedabad Bench of this Tribunal has passed a composite order, dismissing, similarly, 628 appeals by the Revenue and related COs by the assessees. The order is instructive, and is accordingly reproduced as under:
"These 628 appeals and COs pertain to the appeals are filed by various Assessing Officers, all these appeals call into question correctness of the relief granted to the taxpayers by the Commissioners of Income Tax (Appeals) and, most importantly, the tax effect involved in all these appeals does not exceed Rs.50,00,000 in each of these appeals. The cross objections taken up for hearing are only such cross objections as emanate from these appeals and are broadly in support of the orders passed by the Commissioner (Appeals). In these cases, in the light of the discussions with the Principal Chief Commissioner of Income Tax (Gujarat) and representatives of the Ahmedabad ITAT Bar Association, individual notices are dispensed with; notices of hearing are given only through the notice board.
2. It is in this backdrop that we are pleased to take note of a very pragmatic and taxpayer friendly policy decision by the Government of India for reducing the income tax litigation. Vide CBDT circular dated 8th August, 2019, the income tax department has further liberalized its policy for not filing appeals against the decisions of the appellate authorities in favour of the taxpayers, wherein tax involved is below certain threshold limits, and announced its policy decision not to file, or press, the appeals, before this Tribunal, against the appellate orders favourable to the assessee in the cases in which overall tax effect, excluding interest- except when interest itself is in dispute, is Rs 50,00,000 or less. What it means, in plain words, is that when a Commissioner (Appeals) gives the taxpayer ITA NO.457/ALLD/05 and 72 other appeals and COs Page 7 of 12 tax relief of upto Rs 50 lakhs in an appeal in an assessment year, the matter ends there and the relief so granted by the Commissioner (Appeals) cannot be challenged before this Tribunal, that when this Tribunal gives the taxpayer relief of upto Rs 1 crore in an appeal in an assessment year, the matter ends there and the relief so granted by the Tribunal cannot be challenged before the Hon'ble High Court, and that when Hon'ble High Court gives relief of upto Rs 2 crore to the taxpayer in an appeal in an assessment year, that relief cannot be challenged before Hon'ble Supreme Court. These monetary threshold limits for filing of appeals by the income tax authorities do not take into account interest and other corollaries of the tax demands being confirmed such as penalties, except when a penalty itself is subject matter of litigation, and prosecutions. The enhancement of these monetary limits is at an unprecedented scale. The monetary limit for appeals before this Tribunal, which was Rs 3,00,000 till 10th July 2014, has been in effect enhanced to almost 1,700% in the last five years. This substantial relaxation is certainly a huge step which signifies trust reposed by the Government of India in the decisions of the appellate forums, and substantially cuts down time taken in the finality of the appellate process. It is indeed heartening to note that in one stroke, the Government has not only prevented, but has, in effect, set the stage for withdrawal of thousands of appeals before this Tribunal and before Hon'ble Courts above. In an environment in which retrospectivity was attached only to the taxation and not to tax reliefs or concessions, such an approach is a pleasant departure from legacy practices.
3. In view of the above factual background and the generous concession by this benevolent CBDT circular, all these appeals must be dismissed as withdrawn and the related cross objections must be dismissed as infructuous. There is, however, a small issue that we must deal with.
4. Smt Aparna Agarwal, learned Departmental Representative, however, has a point to make. She points out that the circular dated 8th August 2019 is not clearly retrospective inasmuch as it specifically states in para 4 that "(t)he said modifications shall come into effect from the date of issue of this Circular". It is thus pointed out that this sentence gives an impression that is only after ITA NO.457/ALLD/05 and 72 other appeals and COs Page 8 of 12 the date of the said circular that the departmental appeals will not be filed in the cases within the specified tax effect limits. We are urged to bear in mind the impact of this observation while giving effect to the circular dated 8th August, 2019. She, however, hastens to add that she is yet to have any specific instructions on the issue and she leaves it for the bench to take the appropriate call. Learned representatives appearing for the taxpayers vehemently oppose the suggestion implicit in her submissions. All of them are unanimous in their argument that the circular must be held to have retrospective application and must equally apply to the pending appeals as well. Shri J P Shah, Senior Advocate, points out that the circular dated 8th August 2019 is not a standalone circular and it is required to be read with the old circular no. 3 of 2018 which is what it seeks to modify. This circular, according to the learned counsel, only enhances the monetary limits and gives further relaxation. He urges us not to read the circular in a manner so as to nullify the underlying approach and object of reducing litigation. Shri Soparkar, learned Senior Advocate, submits that all that the present circular does is to modify the monetary limits and nothing more, and, therefore, it cannot be treated to follow any other approach other than the approach followed in the old circular. The old circular, beyond any dispute or controversy, categorically applied to the pending appeals as on the date of issuance of circular. Shri Tushar Hemani, learned Senior Advocate, points out that the circular dated 8th August 2019 only gives further relief not only in terms of the monetary limits but also in terms of the manner in which the application of circular to orders dealing with more than one year is to made. Shri S N Divetia, learned counsel for the assessee, submits that unlike in the cases of earlier CBDT circulars, which used to be in supersession of earlier circulars on the issues, the circular dated 8th August 2019 only modifies the earlier circular which, inter alia, provided for its retrospective application. Our attention is invited to some judicial precedents in support of the contention that the benevolent circular, such as the one in question, is to be given effect in respect of the pending appeals as well. Ms Urvashi Shodhan, learned counsel for the assessee, points outs that its plainly contrary to the scheme of the litigation policy of the ITA NO.457/ALLD/05 and 72 other appeals and COs Page 9 of 12 Government of India to give this circular only prospective effect. Shri S K Sadhwani, learned counsel for the assessee, invites our attention to the letter dated 16th July 2018 issued by Member CBDT to the all the Principal Chief Commissioners of Income Tax, in the context of circular dated 11th July 2018 that the present circular seeks to modify, seeking report on withdrawal of the appeals covered by the circular. He then points out that it is the old circular is still alive today and the only change is with respect to the monetary limits. In all fairness, therefore, the same approach regarding withdrawal of pending appeals must be followed for this circular as well. On the same lines, arguments are advanced by the learned representatives which, for the sake of brevity and to avoid repetition, we are not referring to in more specific details. In brief rejoinder, learned Departmental Representative graciously leaves the matter to us.
5. Having considered the rival submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now. Our line of reasoning is this. The circular dated 8th August 2019 is not a standalone circular. It is to be read in conjunction with the CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of the said circular. This is evident from the following extracts from the circular dated 8thAugust 2019:
2. As a step towards further management of litigation. it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly. the table for monetary limits specified in Para 3 of the Circular shall read as follows:
S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 ITA NO.457/ALLD/05 and 72 other appeals and COs Page 10 of 12
3. Further, with a view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed. para 5 of the circular is substituted by the following para: "5. The Assessing Officer shall calculate the tax effect separately for every assessment year in respect of the disputed issues in the case of every assessee. If in the case of an assessee, the disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which the tax effect in respect of the disputed issues exceeds the monetary limit specified in para 3. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3. Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified in para 3.
In case where a composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately"
4. The said modifications shall come into effect from the date of issue of this Circular.
6. Clearly, all other portions of the circular no. 3 of 2018 (supra) have remained intact. The portion which has remained intact includes paragraph 13 of the aforesaid circular which is as follows:
13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below the specified tax limits in pare 3 above may be withdrawn/ not pressed.
7. In view of the above discussions, we hereby hold that the relaxation in monetary limits for departmental appeals, vide CBDT ITA NO.457/ALLD/05 and 72 other appeals and COs Page 11 of 12 circular dated 8th August 2019 (supra) shall be applicable to the pending appeals in addition to the appeals to be filed henceforth.
8. Learned Commissioner (DR) then submits liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeals and restoration of the appeals in the cases (i) in which it can be demonstrated that the appeals are covered by the exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds Rs 50,00,000. None opposes this prayer; we accept the same. We make it clear that the appellants shall be at liberty to point out the cases which are wrongly included in the appeals so summarily dismissed, either owing to wrong computation of tax effect or owning to such cases being covered by the permissible exceptions- or for any other reason, and we will take appropriate remedial steps in this regard.
9. In the light of the above discussions, all the appeals stand dismissed as withdrawn. As the appeals filed by the Revenue are found to be non-maintainable and as all the related cross-objections of the assessee arise only as a result of those appeals and merely support the order of the CIT(A), the cross objections filed by the assessee are also dismissed as infructuous. Ordered, accordingly."
6. In view of the foregoing, the Revenue's appeals and the assessees' COs are being dismissed in limine as withdrawn/not pressed.
7. It may be clarified that though every care has been taken by the Registry of the Tribunal in identifying the listed appeals, it may yet be that some error in working the tax effect may have occurred. It may also be that an appeal/s is otherwise saved by the exceptions listed at para 10 (scope of which stands widened vide amendment dated 20/8/2018) or para 11 of the Circular. Similarly, it may be that a CO/s bears an independent ground/s, raised for adjudication. Accordingly, liberty is hereby granted to the parties to, where so, move the Tribunal in this regard, in which case it shall, where satisfied on merits, recall an appeal/s or, as the case may be, a CO/s, for being heard on merits. Further, the recall of an appeal would be accompanied ITA NO.457/ALLD/05 and 72 other appeals and COs Page 12 of 12 by the recall of the assessee's corresponding CO, if any, dismissed along with. Needless to add, the Tribunal shall, while doing so, which shall be per a speaking order, grant an opportunity of hearing to the other side.
8. In the result, all the appeals of the Revenue and Cross Objections by the assessees stand dismissed.
Order pronounced in the open Court on 30/08/2019.
Sd/- Sd/-
[T. S. KAPOOR] [A. D. JAIN]
ACCOUNTANT MEMBER VICE PRESIDENT
DATED:30/08/2019
JJ:3008
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT(A)
4. CIT
5. DR
By order
Assistant Registrar